Digital Rights Management in Media & Entertainment Market Size, Share & Trends Analysis Report By Application (Mobile Content, Video on Demand, Mobile Gaming And Apps), By Enterprise Size, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global digital rights management in media & entertainment market size was valued at USD 1.74 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 16.5% from 2021 to 2028. Digital disruption and the increasing expanse of high bandwidth internet networks are allowing the easy distribution of media content across users. However, this also allows for the illegal sharing of media content including audio, video, books, and applications, affecting the revenue of content publishers and distributors. To reduce the illegal distribution of media content, several content publishers and distributors adopt Digital Rights Management (DRM) technologies. DRM technologies protect content using license keys or templates and allowing only the authorized users to view or use the contents even if it is distributed or duplicated illegally.  

In recent years, the demand for DRM technologies has increased significantly across the U.S. owing to the growth in digital conversion technologies and the increased consumption of digital media among users. Leading content producers, media distributors, and content publishers’ dependent on the revenue generated from their content are increasingly investing in several DRM technologies to prevent consumers from copying or converting the content in other formats. For instance, In November 2020, Deluxe Media Inc., a U.S.-based enterprise offering distribution services for OTT platforms and content creators, selected the KeyOS MultiKey Server by BuyDRM Inc to deliver secure premium video content from the National Hot Rod Association (NHRA).

Advancements in digital media technology have helped accelerate the introduction of several types of media services. Realizing the opportunities, broadcasters, OTT, and Pay TV operators are increasingly shifting to cloud-based infrastructure to deliver on-demand content to consumers. To deliver, convert, and package content in various formats for viewers to view it on different devices motivates content owners and content distribution partners to adopt a scalable and cost-effective way to deliver content. DRM solutions help content creators and distributors deliver content for certain audiences and provide multi-tiered subscription plans as a way to increase revenue. For instance, an OTT platform can charge a lower fee to consumers to access the content on 1 device and simultaneously increase the charge allowing access to the content across devices.

Digital content forms the core element of the media, publishing, and entertainment industries. As such, protecting content from piracy and unauthorized access is critical to ensure that it is shared with only the subscribers. Moreover, content piracy and unauthorized access decrease the revenue opportunities of professional content creators. This has created the need for quality DRM solutions among media enterprises to provide user controls for different audiences for different content.

COVID-19 Impact Analysis

The COVID-19 pandemic had a substantial impact on the DRM in the media and entertainment market. As consumers were compelled to follow government guidelines and stay indoors for longer durations, the demand for mobile content, video on demand (VOD), and mobile gaming content consumption increased. Streaming partners, content developers, and content distributors increased their investment in DRM technologies to restrict and curb the piracy of premium content. For instance, in May 2020, Intertrust Technologies Corporation revealed that Sony Pictures Networks India Pvt Ltd., a subsidiary of Sony Corporation, selected ExpressPlay DRM to secure content streaming of its Indian digital OTT platform, SonyLIV.

Application Insights

The video on demand application segment dominated in 2020 and is expected to expand at the fastest CAGR of over 19% over the forecast period. Factors such as increased internet connectivity and the growing number of smartphones users globally, who can easily download and view high premium video content online, attribute to the segment growth. As a result of the increased demand for high-quality video content, several premium content distributors and streaming partners are investing in DRM technologies to target new audiences and expand their revenues opportunities. With the rise in demand for VOD services, several TV, sports, and event broadcasters have started investing in technologies to offer streaming services to authorized consumer groups.

The mobile content segment is expected to witness promising growth opportunities. The soaring number of mobile device users and increase in consumers browsing content on various mobile apps are contributing to the segment growth. Realizing the potential growth of mobile users, several content developers are offering marketing content, advertisements, and subscription-based content via mobile applications as a subscription pricing model. However, such content is highly vulnerable to piracy and unauthorized access. Therefore, the demand for DRM is rising to curb the piracy of content over mobile apps and provide secured access to limited and authorized users.

Enterprise Size Insights

Large enterprises dominated the market in 2020, accounting for around 70% revenue share of the overall market. The segment growth is attributed to the increased investments in DRM technologies among large enterprises ranging from streaming service providers, OTT channels, Pay TV service providers and large production organizations. As large enterprises continue to expand their service across regions and countries, the demand for multiple DRM technologies continues increasing. Moreover, the demand to continuously manage the DRM process to offer a different mode of content access to a different set of consumer groups is also expected to drive the demand for DRM technologies among large enterprises over the forecast period.

Small-scale enterprises or content producers have limited resources to integrate and deploy DRM solutions and continuously monitor the DRM process. Thus, the required investment in the implementation and adoption of DRM technologies is not at par among SMEs as compared to large enterprises. However, with the rise in managed DRM service providers, SMEs are being offered a range of options to leverage professional expertise at an optimized cost, allowing them to securely distribute content to authorized users. This trend is expected to drive the adoption of DRM technologies among SMEs over the forecast period.

Regional Insights

North America dominated the global market in 2020, accounting for more than 35% of the overall revenue share. The increased spending on video-on-demand solutions, video streaming content, games, and distribution of eBooks across the U.S. and Canada have contributed to the region’s dominant position in the market. Furthermore, the presence of large content developers and distributors such as Netflix, Inc.; Amazon.com, Inc.’s Prime; and Hulu, LLC; which are aggressively opting for DRM solutions, has also contributed to the growth of the regional market. Moreover, the well-established digital infrastructure and the stringent standards related to digital content protection in the region can be attributed to the market growth.

The demand for DRM solutions in Asia Pacific is expected to expand at a CAGR of around 20.0% over the forecast period. High population density, an increasing number of smartphone users, and growing internet bandwidth are encouraging users to browse mobile content, video on demand, and ebooks over the internet. Content developers are increasingly collaborating with large streaming and OTT partners to deliver premium content for consumers using such channels. However, delivering such premium content securely is crucial, compelling distribution partners to invest in DRM solutions.

Key Companies & Market Share Insights

The digital rights management in media and entertainment market is fragmented with the presence of several DRM solution providers. Product upgrades, new product development, and the formation of strategic collaborations are some of the key initiatives adopted by DRM vendors to maintain their market positions. For instance, in November 2020, Bitmovin Inc entered into a partnership agreement with OKAST, a France-based video streaming platform provider. Through the partnership, Bitmovin Inc would implement several technology solutions across more than 200 premium Video on Demand (VoD) platforms.

Prominent vendors offering DRM solutions are investing significantly in research and development activities to innovate and develop advanced DRM solutions and gain a competitive edge over competitors. For instance, In April 2021, Verimatrix announced the introduction of Multi-DRM Core. The DRM solution aimed to address the needs of video streaming providers, enabling them to set up a customized and secured cloud-based DRM system easily. Some of the prominent players operating in the global DRM in media and entertainment industry are:

• Google (Widevine)

• Microsoft

• Irdeto

• Apple Inc.

• Vitrium

• Intertrust Technologies Corporation

• Bitmovin Inc.

• Kudel SKI SA (Nagra)

Digital Rights Management in Media & Entertainment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global digital rights management in media & entertainment market report based on application, enterprise size, and region:

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Mobile Content

  • Video on Demand (VoD)

  • Mobile Gaming and Apps

  • eBook

  • Others

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2028)

  • SMEs

  • Large Enterprises

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA